Trump roils global economy with flurry of tariff letters and confusing deadline

Washington DC - President Donald Trump reignited his trade war by threatening more than a dozen countries with higher tariffs Monday, but then said he may be flexible on his new August deadline to reach deals.

President Donald Trump announced a sweeping new tariff regime, but then immediately cast doubt over the date it is meant to take effect on.
President Donald Trump announced a sweeping new tariff regime, but then immediately cast doubt over the date it is meant to take effect on.  © REUTERS

Trump kicked a flurry of letters by informing key US allies Japan and South Korea that duties he had suspended in April would snap back even more steeply in three weeks.

Tokyo and Seoul would be hit with 25% tariffs on their goods, he wrote. Countries including Indonesia, Bangladesh, Thailand, South Africa, and Malaysia were slapped with duties ranging from 25% to 40%.

But in a move that will cause even more uncertainty in a global economy already unsettled by his tariffs, the 79-year-old once again left the countries room to negotiate a deal.

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"I would say firm, but not 100% firm," Trump told reporters at a dinner with visiting Israeli Prime Minister Benjamin Netanyahu when asked if August 1 deadline was firm.

Pressed on whether the letters were his final offer, Trump replied: "I would say final – but if they call with a different offer, and I like it, then we'll do it."

The US president had unveiled sweeping tariffs on imports on what he called "Liberation Day" on April 2, including a 10% tariff on all countries, but then quickly suspended all levies above that baseline for 90 days following turmoil in the markets.

They were due to kick back in on Wednesday and Trump sent the letters in advance of that deadline.

Trump causes more turmoil with comments on deadline

Trump sent nearly identical letters to more than a dozen countries, some of them among the top US trading partners.
Trump sent nearly identical letters to more than a dozen countries, some of them among the top US trading partners.  © REUTERS

Trump's near-identically worded letters to Japanese and South Korean leaders said he would impose 25% tariffs as their trading relationships with Washington were "unfortunately, far from Reciprocal."

He warned of further escalation if there was retaliation against the levies.

But Trump on Monday also signed an order formally extending the Wednesday deadline, postponing it to August 1.

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The new date effectively marks a further delay, and Trump's latest comments threaten to compound the uncertainty over when the deadline really is.

According to letters posted to Trump's Truth Social platform, products from Indonesia will face a 32% tariff, while the level for Bangladesh is 35% and Thailand, 36%.

Most countries receiving letters so far had duties similar or unchanged from rates threatened in April, although some like Laos and Cambodia saw notably lower levels.

The Trump administration is under pressure to show results after promising "90 deals in 90 days."

So far only two firm deals have emerged, with Britain and Vietnam, plus an agreement to dial back super-high tit-for-tat tariffs with China.

US trading partners react to latest blow

Markets were roiled by Trump's latest announcement and the uncertainty over his deadline for new trade deals.
Markets were roiled by Trump's latest announcement and the uncertainty over his deadline for new trade deals.  © REUTERS

Japan's Prime Minister Shigeru Ishiba said at a cabinet meeting Monday that the announcement of the 25 percent tariffs is "genuinely regrettable," local media reported.

South Korea's National Security Adviser Wi Sung-lac meanwhile met with his US counterpart Marco Rubio in Washington, expressing hope that a bilateral summit could soon be held to achieve "mutually beneficial outcomes across key pending issues."

Asked why Trump opted to start with Japan and South Korea, White House Press Secretary Karoline Leavitt said: "It's the president's prerogative, and those are the countries he chose."

Thailand's acting prime minister Phumtham Wechayachai said Tuesday he wanted a "better deal" than the 36% tariff Trump threatened to impose, adding: "The most important thing is that we maintain good relations with the US."

Malaysia said it was "committed to continuing engagement with the US towards a balanced, mutually beneficial, and comprehensive trade agreement," its trade ministry said in a statement, after Washington imposed a 25% tariff on the Southeast Asian nation.

US Treasury Secretary Scott Bessent said Monday that there would be more deals coming up: "We are going to have several announcements in the next 48 hours."

Trump has also threatened an extra 10% tariff on countries aligning themselves with the emerging BRICS nations, accusing them of "Anti-American policies" after they slammed his duties at a summit.

Cover photo: Collage: REUTERS

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